Event catering is the business of providing customized food services for private events and special occasions. For restaurants looking to grow revenue streams beyond daily operations, catering presents a major opportunity to utilize existing infrastructure while reaching new audiences.
This article will explore the definition, importance, and benefits of restaurant event catering, as well as provide actionable advice on planning, marketing, executing, and optimizing catering services.
What is Event Catering for Restaurants?
Catering refers to providing complete food and beverage services for events rather than regular meal services at a restaurant. Services typically include:
- Customised menus and cuisine
- Food preparation offsite or on location
- Staffing for service and coordination
- Tableware/equipment rental
- Event setup/teardown
Event catering specifically caters private social and corporate functions like:
- Weddings
- Corporate meetings/events
- Cocktail parties
- Holiday parties
- Luncheons/galas
The Importance and Benefits of Event Catering
Expanding into event catering presents restaurants with tremendous potential to:
- Generate significant revenue and profits
- Raise brand visibility and recognition
- Reach new markets and build loyalty
- Leverage existing resources optimally
On average, catering generates $5 of revenue for every $1 invested – making it extremely attractive for boosting top and bottom lines. As the catering business and private event industry continue strong growth year-over-year, restaurants have more opportunities than ever to capitalize.
Overview of Event Catering for restaurants
Successfully running event catering operations requires expertise across four key areas:
- Planning and preparation
- Marketing and sales
- Smooth execution/delivery
- Measurement and improvements
Understanding Event Catering
Before strategizing entry into catering, it’s important restaurants understand the full breadth of the industry.
What is the Scope of Event Catering?
The scope of catering encompasses all private events – which presents massive market potential. Over 250k weddings and 2M business events are hosted yearly (worth $100B+).
Event caterers typically provide full-service food/beverage services and coordination for:
- Social Events
- Weddings
- Anniversary parties
- Bridal/baby showers
- Graduation parties
- Holiday meals
- Funerals
- Corporate Events
- Meetings & conventions
- Seminars & trade shows
- Employee appreciation events
- Office parties
- Business dinners
Types of Event Catering Services
Catering companies offer flexible solutions to suit any budget and event scope:
- Formal plated dinners
- Buffet spreads
- Food stations/displays
- Cocktail parties
- Breakfasts/brunches
- Box lunches
Services range from dropping off food to full-service coordination with rentals, staffing, etc. This allows custom packages.
Key Components of Catering Success
Successful catering businesses deliver exceptional experiences by expertly coordinating:
- Event planning/logistics
- Menu planning with skilled chefs
- Food preparation and presentation
- Staff training and management
- Table settings and equipment
- Service execution (transport, setup, teardown)
Meeting high standards across all components is challenging – but pays major dividends in revenue, brand equity, and loyalty.
Benefits of Event Catering for Restaurants
Now that the key concepts are clearer, let’s examine why catering represents huge potential for restaurants seeking expansion.
Revenue Generation and Profit Maximization
For restaurants with capacity constraints on location size/hours, catering provides new business opportunities utilizing the existing facilities and staff during off-peak periods.
Since catering leverages much of the core infrastructure while reaching new client events, the profit margins per dollar of incremental revenue are extremely attractive.
Average event catering margins range 25-50% – significantly higher than traditional restaurant service. This boosts net income significantly.
Increased visibility and market presence
Catering services showcase a restaurant’s brand, food, and service to new audiences during private events. For example, office employees at a corporate function.
This allows for expanding visibility and positioning in a market beyond just location-based patrons. As word-of-mouth referrals spread, so does overall brand recognition and desirability.
Building Customer Relationships and Loyalty
Event clients experience first-hand catering services’ quality, customization, and hospitality strengths – driving satisfaction, trust, and loyalty.
Exceeding expectations motivates increased future and referral business from corporate decision-makers or party hosts. Many clients also dine at the affiliated restaurant later on.
Leveraging Existing Resources and Investments
Since catering utilizes much of the existing core staff, kitchen facilities, and equipment – restaurants avoid major redundant capital expenditures when entering the market.
The marginal costs of incremental catering output (food ingredients, packaging, delivery vehicles) is small compared to infrastructure efficiencies gained. This leads to higher ROI.
Planning Successful Restaurant Catering Services
Once committed to catering, restaurants must strategically assess capabilities, target clientele, plan offerings, and invest in operations/marketing foundations.
Assessing Restaurant Fit and Readiness
To determine fit starting catering, examine:
- Kitchen capacity for offsite orders without disrupting core operations
- Staff availability for events during slower periods
- Vehicle availability for deliveries
- Event equipment owned (chaffers, platters, linens)
- Client event types suitable for current cuisine
Assess if incremental investments in some areas make sense to open more catering opportunities.
Identifying Target Markets and Clients
Research regional demographics and event landscapes. Focus on 3-5 best-fit client sectors based on current customer data and network connections:
Example Client Groups
- Potential Targets
- Corporate Tech companies, banks, large employers
- Social Hotels, country clubs, convention centers
- Non-Profit Schools, charities, community groups
Crafting a Diverse and Strategic Catering Menu
Menus must offer variety and flexibility across:
- Cuisine types
- Dietary needs
- Presentation formats
Ensure dishes reflect brand strengths and travel well. Provide tiered packages (e.g. good/better/best) across pricing levels.
Pricing Strategy and Proposals
Calculate costs across ingredients, labor, rentals, travel etc. Set suitable margins for profit goals.
Factor in value perception based on service level and event type when establishing pricing tiers. Develop branded proposal templates showcasing offerings.
Investing in Operations and Staff
Assess the incremental equipment investments needed for executing events offsite without straining restaurant operations.
Train staff on safety protocols and service etiquette. Hire dedicated catering sales and planning roles as the business expands.
Marketing Your Restaurant’s Catering Services
With capacity and offerings in place, executing an assertive marketing strategy makes or breaks success. Spread the word!
Create a Compelling Brand Identity and Positioning
Clearly define catering services’ brand personality and messaging. What makes it distinctive? This guides websites, logo design, proposals etc. to spark interest quickly.
Leverage Both Online and Offline Channels
Pursue both digital and physical marketing channels to cover multiple touchpoints:
Online
- Dedicated catering website section
- Promoted social media posts
- Targeted ad campaigns
- Positive online reviews
Offline
- Print flyers and mailers sent to local companies/planners
- Tasting events, samples, and demos for event pros
- Network at local chamber events
- Promote Services on Social Media and Digital Platforms
Share tantalizing food photos, raving client testimonials, and clear contact info continuously across:
- Facebook marketing for restaurants
- Instagram marketing for restaurants
- Google Business Profile
Invest in paid promotions to get more impressions with event planners researching options.
Network and Connect with Key Industry Partners
Cold call and email:
- Local wedding/event venues
- Certified planners and coordinators
- Corporate office administrators
- Non-profit decision makers
Discuss suitability for referrals. Offer tastings and discounts to incentivize leads.
Delivering Seamless Restaurant Catering Events
With abundant demand and interest, executing events flawlessly ensures returning business and referrals. Prioritization coordination, responsiveness, precision, and care.
Efficient Coordination and Communication with Clients
- Confirm event details (guest count, rentals, menus etc.) 1-2 months beforehand via detailed order forms
- Maintain contact leading up to event for updates
- Reconfirm key timing and points-of-contact 1 week prior
- Ensure Timely Food Preparation and Safe Delivery
- Prep food in properly sanitized facilities avoiding cross-contamination
- Use checklists for ingredients, portions, and customized orders
- Transport items safely within prescribed times/temperatures
- Orchestrate Perfect Event Setup and Service
- Arrive early for sufficient time to place decor, buffets, tables etc. as planned
- Place signage and collateral prominently as discussed
- Staff event with sufficient servers trained on catering etiquette
- Provide Exceptional Hospitality and Issue Resolution
- Greet guests warmly and explain offerings if relevant
- Remain highly visible to answer questions
- Solve problems (long lineups, spills, empty dishes etc.) quickly with positivity
These steps earn 5-star reviews, increased tips, and happy callbacks for more business.
Measure Performance and Continuously Improve
Analyze metrics, feedback, and learnings to refine offerings, staffing, marketing etc. over time.
Solicit Post-Event Feedback from Clients
Email a short satisfaction survey covering:
- Overall quality of food/service
- Performance relative to expectations
- Areas exceeded or lacking
- Logistics successes or pain points
- Likelihood of recommendation
Follow-up on insights directly with further questions. Offer loyalty rewards for participating.
Review Quantitative Performance Metrics
Assess data like:
- Number of catering events monthly
- Revenue and margin growth
- Customer repeat booking frequency
- Referrals generated
- Online reviews and ratings
Set targets to beat quarters ahead.
Identify Areas for Improvement and Innovation
Do post-mortems with staff on what worked well and key issues needing change based on feedback.
Brainstorm process enhancements addressing:
- New menus/formats
- Better packaging/presentation
- Staff training gaps
- More vendor partnerships
- Expanded target markets
Document takeaways clearly for applying across future events.
Continuously Iterate and Optimize Over Time
Use insights to refine:
- Brand messaging
- Offerings
- Customer service
- Technology (online menus/ordering)
This builds capabilities, efficiency, and expertise – making catering ever more profitable.
Conclusion and Final Considerations
Event catering enables restaurants to expand revenue and brand visibility substantially while delighting new customers. By following expert tips across planning, marketing, operations, and improvements – restaurants can build a thriving catering business over time.
Key Takeaways and Benefits
- Leverages existing facilities with minimal incremental investment
- Much higher profit margins than restaurant dining
- Showcases food and service to new audiences
- Forges direct relationships with corporate/social event planners
- Elevates overall brand prestige and interest
With proper strategy and execution, restaurants unlock immense potential via catering.
The Future of Catering is Bright
As the appetite for customizable, convenient catering solutions grows exponentially across corporate and social events alike – huge market potential remains largely untapped. Now is the optimal time for restaurants to expand capabilities and carve out market share.
With the expert advice in this playbook, restaurants have all the tools needed to evaluate, plan, and build successful catering operations ready to capitalize on this runaway trend for years to come. The possibilities are endless.
The food delivery system’s marketing exposure to countless users and more robust delivery capabilities give restaurants a major advantage in profiting from the catering boom.
